After yesterday’s announcement of above average demand for this month’s two-year note auction, the Treasury Department revealed on Wednesday that this month’s auction of $61 billion worth of five-year notes also attracted strong demand.
The five-year note auction drew a high yield of 1.157 percent and a bid-to-cover ratio of 2.55.
The Treasury also sold $61 billion worth of five-year notes last month, drawing a high yield of 0.990 percent and a bid-to-cover ratio of 2.37.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
The ten previous five-year note auctions had an average bid-to-cover ratio of 2.36.
On Thursday, the Treasury Department is scheduled to announce the results of this month’s auction of $62 billion worth of seven-year notes.